And as a developer, you've got lots of choices. And you spoke quite a bit, not just about multi, but you also spoke about purpose built, single family rental and also single family for sale. So Ziv, most of our listeners on this show that are in the residential sector are most familiar with multifamily. They're renting units both at our single-family rental and our class-A multifamily communities. These are renters of choice that are coming in. But we have people with great incomes that are capable of renting.
It will at some point- time catch up when we get a degree of affordability. It actually translates pretty well into multifamily on the operational side because we're seeing rent growth being very robust and not easing anytime soon. But I think that there's softness on the demand side, on the for sale. The mortgage availability is there, the liquidity is there. It's not urgent anymore to go and buy houses. And on the second side of it, which I think is more influential right now, is the psychology. The other vantage point is for sale housing, given the fact that interest rates and mortgage rates have moved about 200 basis points from 300 to 550 and now more like 500, what we're seeing in the market is a softness in demand on the buyer side, and that softness is a combination of affordability. So that's one vantage point that actually is very hopeful. All as a result of not producing during the global financial crisis. We're undersupplied by calculation, depending on the source that you use, anywhere from 1 million to 5 million units, right. The most obvious one is the demographic side of the equation, plus/minus 140 million Americans are in their peak consumption years for residential, and we have not been providing enough housing in the market. It's a very interesting situation, Spencer, because I think you can actually look at the market from a variety of vantage points. Ziv, big picture, how is the market right now treating you, Ziv? And I think that the folks that are able to kind of see their way through in the next 3 to 6 months heading into 2023, are going to be well positioned. But I think it is important when we're talking about multifamily or single purpose housing, which we'll talk about with respect to Resmark, if you're taking the long term view, I think there are going to be clear winners and losers. And I think inflation is at the key and we can get into that a little bit later.
I would say now everyone's trying to figure out what's going on in the debt markets, particularly with construction. Pick your crisis, from wars to inflation to the general kind of macroeconomic factors. I think that's been exacerbated really from March on. Again, I think this time of year, usually you have what some have come to call it the summer slowdown. Well, it goes without saying, extremely choppy. How are the capital markets right now, Roland, and how are they impacting the multifamily sector? Thank you for having me, and a pleasure to ride shotgun with you, Spencer. And then we have our friend and colleague, Roland Merchant, Senior Managing Director at CBRE Capital Advisors. Welcome to The Weekly Take, and to help us with today's conversation, we have two great experts in the sector, starting with Ziv Cohen, the CIO of the Resmark Companies.
I'm Spencer Levy, and that's right now on The Weekly Take. Coming up: there's no place like home - a conversation on all things residential. He's also an active member of numerous real estate organizations, including the National Multifamily Housing Council. In his 20 plus year career, Roland has worked on transactions totaling more than $20 billion. I would say now everyone's trying to figure out what's going on.Īnd that's Roland Merchant, Senior Managing Director and Head of Institutional Advisory for CBRE Capital Advisors. Pick your crisis, from wars to inflation to the general, kind of, macroeconomic factors. Ziv got into the residential sector more than 30 years ago and has been involved in the financing and development of more than 15,000 residential units in the U.S. That's Ziv Cohen, Chief Investment Officer of the Resmark Companies, a residential development specialist that provides capital for single and multifamily projects. You know, Spencer, residential development is very nuanced. With the expertise of two experienced executives - an investor and an advisor - we'll unlock the many variables that are influencing this diverse sector, from the global economy to a shortage of housing here in the U.S. Or, I should say, welcome to an episode about residential real estate.
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